Foxtons Group — FY25 results to be in line; M&A opportunities

Foxtons Group (LSE: FOXT)

Last close As at 14/01/2026

GBP0.57

−1.20 (−2.06%)

Market capitalisation

GBP169m

More on this equity

Research: Real Estate

Foxtons Group — FY25 results to be in line; M&A opportunities

Foxtons Group is expected to achieve its FY25 profit expectation despite external factors affecting demand. However, these factors, plus an internal decision to maintain headcount to capture growth when its arises, leads us to reduce our FY26 and FY27 estimates, in effect pushing out growth by 12 months. Our valuation moves from 126p to 120p as a result. That said, financial headroom has been increased to facilitate further M&A, which appears increasingly likely given the forthcoming Renters’ Rights Act.

Andy Murphy

Written by

Andy Murphy

Director of content, industrials

Real estate

FY25 trading update

15 January 2026

Price 57.00p
Market cap £168m

Net debt at 31 December 2025

£(17.0)m

Shares in issue

294.8m
Free float 100.0%
Code FOXT
Primary exchange LSE
Secondary exchange N/A
Price Performance
% 1m 3m 12m
Abs (4.0) 4.6 (9.6)
52-week high/low 68.9p 49.4p

Business description

Foxtons Group is London’s leading and most widely recognised estate agency. It operates from a network of interconnected branches offering a range of residential-related services, which are split into three separate revenue streams: sales, lettings and mortgage broking.

Next events

FY25 preliminary results

5 March 2026

Analyst

Andy Murphy
+44 (0)20 3077 5700

Foxtons Group is a research client of Edison Investment Research Limited

Note: PBT and EPS include amortisation of acquired intangibles and exceptional items (ie diluted company definition).

Year end Revenue (£m) PBT (£m) EPS (p) DPS (p) P/E (x) Yield (%)
12/23 147.1 7.9 3.21 0.90 17.7 1.6
12/24 163.9 18.0 5.11 1.17 11.2 2.1
12/25e 171.8 17.4 4.95 1.20 11.5 2.1
12/26e 181.2 17.6 5.11 1.25 11.2 2.2

FY25 trading in line with market expectations

Foxtons’ FY25 trading update revealed that revenue was expected to be c £172m, up c 5%, and adjusted operating profit was expected to be in line with market expectations at c £22.0m (FY24: £22.1m restated), despite subdued markets and increased cost pressures. Year-end net debt is expected to be c £17.0m due to £5.3m of acquisition expenditure and £9.1m of shareholder returns.

Robust trading across the divisions

In the core Lettings division, revenue increased c 5% due mainly to the impact of acquisitions. Revenue from the existing portfolio was broadly flat on a like-for-like basis. Margins were also unchanged despite lower interest income on client monies as Foxtons focused on higher-margin revenue streams. Sales revenue also increased c 5%, again due to acquisitions, while like-for-like revenue slipped c 2%. The division was heavily affected by political intervention relating to stamp duty (Q1) and the Autumn Budget (Q4). Financial Services revenue increased c 10%, driven as expected by higher levels of refinancing.

Latest M&A delivers on strategy

On 7 January, Foxtons completed the acquisition of Milton Keynes-based estate agent Cauldwell for a total enterprise value of £6.5m. In the year to November 2025, the business generated revenue of £3.1m and an operating profit of £0.8m. The business is expected to serve as a hub location, benefiting from its position in this high-growth area. The three directors of the business will be staying to drive the next stage of growth under Foxtons’ ownership.

Valuation: FY26 and FY27 estimates lowered

Despite hitting FY25 expectations and executing the latest acquisition, we have revised our FY26 and FY27 expectations to reflect three specific issues: external factors such as increased costs (eg National Insurance contributions and minimum wage rates); an unknown future demand profile, especially in Sales, due to unpredictable levels of consumer confidence; and a deliberate decision to maintain the headcount in Sales to capture demand recovery when it emerges.

Changes to forecasts

General disclaimer and copyright

This report has been commissioned by Foxtons Group and prepared and issued by Edison, in consideration of a fee payable by Foxtons Group. Edison Investment Research standard fees are £60,000 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright 2026 Edison Investment Research Limited (Edison).

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

This document is prepared and provided by Edison for information purposes only and should not be construed as an offer or sol icitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

London │ New York │ Frankfurt

20 Red Lion Street

London, WC1R 4PS

United Kingdom

More on Foxtons Group

View All

Latest from the Real Estate sector

View All Real Estate content

Research: TMT

Frontier Developments — Guidance raised following H126 results

As the industry recovers from its post-COVID-19 hiatus, player engagement is the gold standard for sustainable value creation for developers. We are encouraged not only by Frontier’s creative management simulation (CMS) game positioning and the sector’s potential for particularly deep player-developer relationships, but also the incoming CEO’s player-centric background. With the group strategy now set, results improving and the pipeline strong, we expect strong future value creation and attractive returns for longer-term investors.

Continue Reading